This bill amends the Public Adjusters Licensing Act to establish specific requirements for contracts between licensed public adjusters and insured individuals. It stipulates that no public adjuster may receive compensation for services rendered unless the contract includes essential information such as the license numbers of both the adjuster and the firm, a clear definition of the services to be provided, the compensation details, and the insured's right to cancel the agreement. The bill also introduces a notice of right to cancel, allowing insured individuals to cancel the contract within three business days without penalty, while still being responsible for reasonable expenses incurred by the adjuster prior to cancellation.

Additionally, the bill modifies existing provisions regarding the handling of funds related to claims. It removes the requirement for escrow accounts to be interest-bearing, while still mandating that any funds received by the public adjuster must be deposited in a permitted escrow account. The bill aims to enhance transparency and protect the rights of insured individuals by ensuring that contracts are clear and comprehensive, and by regulating the financial practices of public adjusters. The act is set to take effect 180 days after its enactment.

Statutes affected:
Introduced: 17:22B-13